Detention certificate directions stayed where appellate authority acted prima facie beyond scope and without hearing the department

Directions issued before final determination of the CVD exemption dispute, requiring a detention certificate under the Handling of Cargo in Customs Areas Regulations, 2009 and fixing responsibility on officials, were found prima facie to be beyond the appellate authority's scope. The record also showed that the department had not been heard on the detention-certificate request. On that basis, the operation of the impugned orders was stayed pending disposal of the appeals, and the Revenue's stay applications were allowed.

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Issues: Whether the operation of the impugned orders directing issuance of a detention certificate and fixation of responsibility on officials should be stayed pending disposal of the appeals.

Analysis: The appeal records showed that the main dispute regarding admissibility of exemption from CVD had not been finally decided by the appellate authority, yet directions were issued to grant a detention certificate under Regulation 6(1) of the Handling of Cargo in Customs Areas Regulations, 2009 and to recover amounts from officials if there was any dispute. The order was also passed without hearing the department on the request for detention certificate. On a prima facie view, the directions were found to be beyond the scope of the appellate authority at that stage and not in conformity with law.

Conclusion: The operation of the impugned orders was stayed and the Revenue's stay applications were allowed.

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